GST TAP System Now Charges Penalties Automatically
As now is the tax season, there are things that you need to keep in mind. One of the important things you need to know is the penalty for late payment. If you file or pay late, or you do not file at all, you owe penalties and interest.
The Royal Malaysian Customs Department (RMCD) has started implemented late payment penalties on any GST Returns. Taxpayers have been reported with a 10% penalty on the tax due to late payment by as little as one day. Recently, RMCD has announced the newly enforced automatic penalty feature in the TAP system. The “Highly Efficient” Tax Payer Access Point (TAP) System now generates automatically and let you know how much penalties you have to pay! In other words, the penalties appear to be system generated and are quite significant to taxpayers.
As such, all registrants are advised to make an early payment of GST or not later than one week before the due date to avoid late payment penalty. Please note that the date [of payment received] will depend on the cut-off times for each of the agent banks. (Please check with your bankers on the cut-off times to avoid late payment).
For those (registered persons) who make payment of GST through Cheque Deposit Machine (CQM), they are required to enter the correct taxable period to avoid penalties. In addition, payment makes by Direct Debit will not be processed by the banks on weekends or public holidays. In this regard, taxpayers are advised to go for online payment, which will clear payment immediately to avoid late payment penalties.